Defence Minister Jonathan Coleman says the final stages of Defence Force cost savings may be delayed.
Jonathan Coleman. Photo: RNZ
In 2010, the Government announced that theDefence Force would be expected to find up to $400 million a year in savings.
The money was to be redirected to what was described as frontline capabilities including new equipment.
Dr Coleman said on Monday that the Defence Force is making annual savings of $190 million. He said it can get to $250 million in savings, but the last $100 million will be tough.
The minister said rather than driving hard to reach the target of $350 million to $400 million, it might be better to delay it a year or two - but no decisions have been made.
Labour's defence spokesperson Phil Goff says it's an embarrassing backdown for the Government and an admission from Dr Coleman that significant damage has been done to the Defence Force.
Mr Goff says the cuts have led to the civilianisation of the forces and morale has reached rock-bottom.
Prime Minister John Key concedes it will be difficult for the Defence Force to meet its full savings target.
